Tax Relief for Legal Entity

By concluding a life insurance contract with asset accrual, the employer is not only providing the employees with additional financial guarantees, but also obtains tax relief. When making insurance payments of no more than 20% of the employee's gross annual salary, and the insurance term is no less than 5 years, the individual income tax* and the social tax do not have to be paid. The employer also does not have to pay corporate income tax on the amount not exceeding the above-mentioned 20% of the employee's gross annual salary.

* The individual income tax is due on the insurance proceeds paid out at the end of the term, thus the unpaid individual income tax amount can be considered a deferred tax.